There is a newer version of the North Dakota Century Code
2009 North Dakota Code
6 Banks and Banking
6-01 Department of Financial Institutions
Download pdfthe commissioner of financial institutions. The state department of financial institutions has charge of the execution of all laws relating to state banks, trust companies, credit unions, building
and loan associations, mutual investment corporations, mutual savings corporations, banking
institutions, and other financial corporations, exclusive of the Bank of North Dakota. A local
governing body may not adopt or enforce a resolution or an ordinance regulating a financial
institution or credit union. 6-01-01.1. Regulatory fund established - Uses - Appropriation. 1. There is hereby created a special fund designated as the financial institutions
regulatory fund. The amounts received under the following chapters, and any other
moneys received by the department of financial institutions, must be deposited into
this fund: chapters 6-01, 6-03, 6-05, 6-06, 6-10, 13-04.1, 13-05, 13-08, 13-09, and
13-10. 2. All moneys deposited in the financial institutions regulatory fund are reserved for use
by the department of financial institutions to defray the expenses of the department
in the discharge of its administrative and regulatory powers and duties as prescribed
by law, subject to the applicable laws relating to the appropriation of state funds and
to the deposit and expenditure of state moneys. The department of financial institutions is responsible for the proper expenditures of these moneys as provided
by law. 3. Any cash balance in the financial institutions regulatory fund after all current
biennium expenditures are met must be carried forward in the financial institutions
regulatory fund for the next succeeding biennium. The balance in this fund at the
end of the current biennium, excluding fees collected for use in the next succeeding
biennium, may not exceed twenty percent of the department's next succeeding
biennial budget. 4. All moneys derived from the investment of any portion of the financial institutions
regulatory fund must be credited to the fund. 6-01-02. Definitions. As used in this title, unless the context or subject matter otherwise requires: 1. "Association", "banking association", or "state banking association" means any
corporation organized under the laws of this state covering state banking
associations, and all corporations, limited liability companies, partnerships, firms, or
associations whose business in whole or in part consists of the taking of money on
deposit, except national banks, trust companies, and the Bank of North Dakota. 2. "Bank" means any national bank, national banking association, corporation, state
bank, state banking association, or savings bank, whether organized under the laws
of this state or of the United States, engaged in the business of banking. 3. "Bank holding company" means bank holding company as defined in 12 U.S.C.
1841(a)(1). Page No. 1 4. "Banking" means the business of receiving deposits, making loans, discounting
commercial paper, issuing drafts, traveler's checks, and similar instruments,
handling and making collections, cashing checks and drafts, and buying and selling
exchange. 5. "Banking department" means the state department of financial institutions. 6. "Banking institution" means any bank, trust company, or bank and trust company
organized under the laws of this state. 7. "Branch" means a place of business where deposits are received, checks paid, or
money lent as a result of a bank that was merged into another bank pursuant to an
interstate merger. 8. "Commissioner" means the commissioner of financial institutions. 9. "Corporate central credit union" means a credit union operated for the primary
purpose of serving corporate accounts. A credit union is deemed to be a corporate
central credit union when its total dollar amount of outstanding corporate loans plus
corporate share and deposit holdings is equal to or greater than seventy-five percent
of its outstanding loans plus share and deposit holdings. 10. "Credit union" means a cooperative, nonprofit association organized for the
purposes of encouraging thrift among its members, creating a source of credit at a
fair and reasonable rate of interest, and providing an opportunity for its members to
improve their economic and social condition. 11. "Electronic" means relating to technology having electrical, digital, magnetic,
wireless, optical, electromagnetic, or similar capabilities. 12. "Electronic communication" means any form of communication, not directly involving
the physical transmission of paper that creates a record that may be retained,
retrieved, and reviewed by a recipient of the communication and may be directly
reproduced in paper form by the recipient through an automated process. 13. "Electronic record" means a record created, generated, sent, communicated,
received, or stored by electronic means. 14. "Electronic signature" means an electronic sound, symbol, or process attached to or
logically associated with a record and signed or adopted by a person with the intent
to sign the record. 15. "Financial institution" means any bank, industrial loan company, or savings and loan
association organized under the laws of this state or of the United States. 16. "Merger" or "merge" means the merging or consolidation of two or more banks
including the purchase of all or substantially all of the assets and assumption of
liabilities of a bank, facility, or branch. 17. "Mutual investment corporation" or "mutual savings corporation" means a
corporation organized to engage in the investment or savings business, but having
no capital stock or a nominal capital stock. 18. "National bank" or "national banking association" means an institution chartered by
the comptroller of the currency under the National Bank Act [12 U.S.C. 24]. 19. "Record" means information that is inscribed on a tangible medium or that is stored
in an electronic or other medium and is retrievable in perceivable form. Page No. 2 20. "Tier 1, tier 2, and tier 3 capital" means those terms as set under title 12, Code of
Federal Regulations, part 325, in effect on August 1, 2009. 21. "Trust company" means any corporation formed for the purpose of transacting
business as an annuity, safe deposit, surety, or trust company. 6-01-03. State banking board and state credit union board. 1. The state banking board consists of the commissioner and six members to be
appointed by the governor, four of whom must each have had at least five years'
experience in an executive capacity in the management of a state bank in the state
of North Dakota, one of whom must have at least five years' experience in an
executive capacity in the management of any state or national bank in North Dakota,
and one of whom must be a laymember from the public at large. The term of office
of the members of the board, other than the commissioner, is for a period of five
years. In case of a vacancy in the board, by death, resignation, or removal of an
appointed member, the vacancy must be filled by appointment by the governor for
the unexpired term. The commissioner is the chairperson of the board and the attorney general is, ex officio, the attorney for the board. The assistant commissioner shall serve as its secretary. The board shall hold regular meetings in
January, March, May, July, September, and November of each year and special
meetings at the call of the commissioner in such place as the commissioner may
designate within the state of North Dakota. The members of the board, other than
the commissioner, shall receive one hundred dollars per day while attending
meetings, or in the performance of such special duties as the board may direct.
Expense reimbursements for meals, lodging, and transportation must be at the
same rate as those allowed state employees. 2. The state credit union board consists of the commissioner and four members to be
appointed by the governor. Two of the members of the state credit union board
must have at least three years' experience as an officer, director, or committee
member of a North Dakota state-chartered credit union, one member of the board
must have had at least three years' experience as an officer, director, or committee
member of a federally chartered credit union, and one member of the board must be
a laymember from the public at large. The term of office of appointed board members is five years. In case of a vacancy in the board, by death, resignation, or
removal of an appointed member, the governor shall appoint an individual to fill the
vacancy for the unexpired term. The commissioner chairs the board and the attorney general is, ex officio, the attorney for the board. The assistant commissioner shall serve as its secretary. The members of the state credit union
board are entitled to receive the same remuneration as is provided for the members
of the state banking board. The state credit union board shall hold meetings in
March, June, September, and December of each year and special meetings at the
call of the commissioner in such places as the commissioner may designate within
the state. 3. The word "board" when used in this title includes the state banking board and the
state credit union board. 6-01-04. Powers and duties of the state banking board and state credit union board. The board may adopt rules for the government of financial corporations mentioned in
section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United
States. The board shall make and enforce such orders as are necessary or proper to protect the
public and the depositors or creditors of those financial corporations and institutions. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial corporations named in this
chapter. Page No. 3 6-01-04.1. Removal of officers, directors, and employees of financial corporations or institutions. 1. The department of financial institutions or the board may issue and serve, upon any
current or former officer, director, or employee of a financial corporation or institution
subject to its jurisdiction and upon a financial corporation or institution involved, a
complaint stating the basis for the board's or the department's belief that the current
or former officer, director, or employee is engaging, or has engaged, in any of the
following conduct: a. Violating any law, regulation, board order, or written agreement with the board; b. Engaging or participating in any unsafe or unsound practice; or c. Performing any act of commission or omission or practice which is a breach of
trust or a breach of fiduciary duty. 2. The complaint must contain a notice of opportunity for hearing pursuant to chapter
28-32. The date for the hearing must be set not less than thirty days after the date
the complaint is served upon the current or former officer, director, or employee of a
financial corporation or institution. The current or former officer, director, or employee may waive the thirty-day notice requirement. 3. If no hearing is requested within twenty days of the date the complaint is served
upon the current or former officer, director, or employee, or if a hearing is held and
the board finds that the record so warrants, and if the board finds that a financial
corporation or institution has suffered or will probably suffer significant loss or other
significant damage or that the interest of its depositors, shareholders, members, or
creditors could be seriously prejudiced, it may enter an order suspending or
removing the current or former officer, director, or employee. 4. A contested or default suspension or removal order is effective immediately upon
service on the current or former officer, director, or employee and upon a financial
corporation or institution. A consent order is effective as agreed. 5. Any current or former officer, director, or employee suspended or removed from any
position pursuant to this section is not eligible, while under suspension or removal, to
occupy any position within a financial corporation or institution in North Dakota until
the suspension or removal is terminated by the department of financial institutions or
board. 6. When any current or former officer, director, employee, or other person participating
in the conduct of the affairs of a financial corporation or institution is charged with a
felony in state or federal court, involving dishonesty or breach of trust, the
commissioner may immediately suspend the person from office or prohibit the
person from any further participation in a financial corporation's or institution's
affairs. The order is effective immediately upon service of the order on a financial
corporation or institution and the person charged, and remains in effect until the
criminal charge is finally disposed of or until modified by the board. If a judgment of
conviction, a federal pretrial diversion, or similar state order or judgment is entered,
the board may order that the suspension or prohibition be made permanent. A finding of not guilty or other disposition of the charge does not preclude the
commissioner or the board from pursuing administrative or civil remedies. 6-01-04.2. Cease and desist orders. 1. The department of financial institutions or the board may issue and serve upon a
financial corporation or institution subject to its jurisdiction a complaint stating the Page No. 4 factual basis for the department's or board's belief that the financial corporation or
institution is engaging in any of the following conduct: a. An unsafe or unsound practice. b. A violation in the past or on a continuing basis of any law, regulation, board
order, or written agreement entered into with the board. 2. The complaint must contain a notice of opportunity for hearing pursuant to chapter
28-32. The date for the hearing must be set not less than thirty days after the date
the complaint is served upon the financial corporation or institution. The financial
corporation or institution may waive the thirty-day notice requirement. 3. If the financial corporation or institution fails to respond to the complaint within
twenty days of its service, or if a hearing is held and the board concludes that the
record so warrants, the board may enter an order directing the financial corporation
or institution to cease and desist from engaging in the conduct which was the subject
of the complaint and hearing and to take corrective action. 4. The commissioner or the board may enter an emergency, temporary cease and
desist order if the commissioner or the board finds the conduct described in the
complaint is likely to cause insolvency, substantial dissipation of assets, earnings, or
capital of the financial corporation or institution, or substantial prejudice to the
depositors, shareholders, members, or creditors of the financial corporation or
institution. An emergency, temporary cease and desist order is effective immediately upon service on the financial corporation or institution and remains in
effect for no longer than sixty days or until the conclusion of permanent cease and
desist proceedings pursuant to this section, whichever is sooner. An emergency,
temporary cease and desist order may be issued without an opportunity for hearing.
The financial corporation upon which such an order is served may apply to the
district court of the county in which the financial corporation or institution is located
for an order enjoining the operation of the emergency, temporary order. The application for injunction and procedure upon application must comply with the
requirements of section 6-07-14. 6-01-04.3. Assessment of civil money penalties. 1. The commissioner or the board may assess a civil money penalty against a financial
institution or financial corporation, including state-chartered banks, credit unions,
trust companies, and savings and loan associations, or an officer, director,
employee, agent, or person participating in the conduct of the affairs of the financial
institution or corporation, upon finding one or more of the following: a. Failure to comply with a permanent or temporary cease and desist order that
has been voluntarily consented to or issued pursuant to section 6-01-04.2; b. Failure to comply with a final order that has been voluntarily consented to or
issued following formal proceedings under chapter 28-32; c. Payment of dividends in violation of section 6-03-36; d. Loans and leases to one borrower or concern which exceed the limitations set
forth in sections 6-03-59 and 6-03-59.1; e. Loans to directors, officers, and employees in violation of section 6-03-60; f. The intentional filing of inaccurate or misleading call reports required by section
6-03-70; Page No. 5 g. Violations of loan limitations under subsection 1 of section 6-06-12; h. Loans in violation of section 6-06-14; or i. Failure to file notice of change of control under section 6-08-08.1. 2. The commissioner or the board commences administrative proceedings to assess
civil money penalties by serving a complaint on the respondent stating the factual
basis for the commissioner's or board's belief that a violation has occurred and the
amount of civil penalties that the complaint seeks to impose. The complaint must
contain a notice of an opportunity for an administrative hearing conducted under
chapter 28-32. The date for the hearing must be set not less than thirty days after
the date the complaint is served upon the respondent. If assessment of civil money
penalties are proposed based on conditions described in subdivisions c through i of
subsection 1, a complaint may not be filed unless the respondent has been provided
with prior orders, examination reports, or other written communications, and has
willfully refused to take corrective action that the respondent was capable of taking at
the time. 3. If the respondent fails to answer the complaint within twenty days of its service, the
commissioner or board may enter an order imposing civil money penalties upon the
respondent. If a hearing is held and the board concludes that the record so warrants, the board may enter an order imposing civil money penalties upon the
respondent. The assessment order is effective and enforceable immediately upon
service or upon a date specified in the order, and remains effective and enforceable
until it is stayed, modified, terminated, or set aside by action of the board or a
reviewing court. 4. In determining the amount of civil penalty imposed, the commissioner or board shall
consider the good faith of the financial institution or the person being assessed, the
gravity of the violation and any previous violations. The commissioner or board may
not impose a civil money penalty in excess of five thousand dollars for each
occurrence and one hundred dollars per day for each day that the violation continues
after service of an order. Any civil money penalties collected under this section must
be paid to the state treasurer and deposited in the financial institutions regulatory
fund. 6-01-04.4. Prompt corrective action. The board may enter an order if the board finds that a state bank is undercapitalized, significantly undercapitalized, or critically undercapitalized.
For the purpose of this section, undercapitalized, significantly undercapitalized, and critically
undercapitalized have the same definition as found in title 12, Code of Federal Regulations,
part 325, section 103. The order may require an undercapitalized state bank to take prompt
corrective action as the board determines reasonable to bring the bank to an adequately
capitalized condition, including the submission and implementation of an acceptable capital
restoration plan. For a significantly or critically undercapitalized state bank, the board may issue
a temporary cease and desist order appointing a receiver, or with the consent of the federal
deposit insurance corporation appoint a conservator or take such other action as may be better
to resolve the problems of the state bank consistent with section 38 of the Federal Deposit
Insurance Act of 1991 [Pub. L. 102-242; 105 Stat. 2253; 12 U.S.C. 1831(o) et seq.]. A bank that
has been served with a complaint requesting the state banking board to issue a prompt
corrective action under this section may request a hearing before the board within five days after
service of the complaint upon the bank. A request for a hearing must be granted and the hearing
must be held not later than ten days after the request is filed with the board. A complete record
of the hearing must be established and maintained. On the basis of the hearing, the board may
issue an order. The bank may appeal the board's order under this section to the district court of
Burleigh County, North Dakota, within ten days after the board's order is served on the bank.
The appeal is governed by chapter 28-32. Page No. 6 6-01-05. Taking of testimony and enforcement of orders. The board, the commissioner, and the deputy examiners each have the power to subpoena witnesses,
administer oaths, and generally to do and perform any and all acts and things necessary to the
complete performance of the powers and duties imposed upon them in this title, and to enforce
the provisions of law relating to financial institutions. For the purpose of enabling them to perform all the duties imposed upon them, the provisions of section 27-10-23 are applicable to
their proceedings. Any and all orders made by the board are operative immediately and remain
in full force until modified, amended, or annulled by the board, or by a court of competent
jurisdiction in an action commenced by the party against whom such order has been issued. 6-01-06. Appointment of receivers. The board, except as otherwise provided in this title, has authority and power to appoint, by its own order, receivers for insolvent corporations or
institutions defined in this title. Such receivers have the same power and authority, and their acts
have the same validity, as if they had been appointed under and by the direction of a district
court. Nothing herein contained may be construed so as to take away from the courts the power
to appoint receivers of such corporations or institutions at any stage of the proceedings and thus
to terminate the receivership ordered by the board. 6-01-07. Records of state banking board, state credit union board, and commissioner. The state banking board and state credit union board shall keep a full and
complete record of all their proceedings and of all orders made by them. The records and the
proceedings of the boards and commissioner are open in accordance with sections 44-04-18 and
44-04-19. All reports, except supervisory reports of examination, made by or filed with the board
or the commissioner relating to any financial institution, must be open to inspection and
examination by stockholders, shareholders, depositors, creditors, and sureties on any bonds of
any such institution or on the bonds of any officer or employee thereof, subject, however, to the
following restrictions: 1. A stockholder, shareholder, depositor, creditor, or surety of any institution desiring to
inspect the information specified above of any institution shall make a written
request for the inspection. 2. A written request must: a. Specify the information to which access is requested; and b. Give the reasons for the request. 3. Upon written request, the commissioner, or any person designated in writing by the
commissioner, may disclose information specified in subsection 1 of section
6-01-07.1 only upon determining and to the extent that good cause exists for the
disclosure. 4. Either prior to or at the time of any disclosure, the commissioner or designee shall
impose such terms and conditions as the commissioner deems necessary to protect
the confidential nature of the information, the financial integrity of the financial
institution to which the information relates, and the legitimate privacy interests of any
individual named in the information. 6-01-07.1. Records - Confidential. 1. All facts and information obtained by the commissioner or the department in the
following ways are confidential, except as provided in subsections 2 through 7: a. In the course of examining financial institutions, credit unions, and other
licensed entities under the supervision of the commissioner, or in the course of
receiving audit reports, reports of examining committee and reports of annual
meetings of stockholders and directors of such institutions and licensees. The
reports of examination may be made available to the financial institution's or Page No. 7 licensee's board of directors, or the board's specifically authorized agents or
representatives, but the reports remain the property of the department. b. From the federal reserve system, federal deposit insurance corporation, federal
home loan bank board, national credit union administration, or any state bank
or credit union supervisors or supervisors of other licensed entities of other
states. c. In the course of investigating an institution under the supervision of, or licensed
by, the commissioner, until such investigation is complete. d. In the course of a special investigation being carried out at the request of the
governor or any court. e. In the form or nature of an application for a charter, license, or permission
which meets any of the following criteria: (1) Trade secrets and commercial or financial information. (2) Personnel and medical files and similar files the disclosure of which
would constitute a clearly unwarranted invasion of personal privacy. (3) Information contained in the application form which is in the nature of
examination report information. Determination of what required application information falls within each
category must be made by the body before which the application is brought. 2. When the commissioner is required or permitted by law to report upon or take
special action regarding the affairs of any institution or licensed entity under the
commissioner's supervision, the commissioner shall divulge only such information
specified in subsection 1 as is necessary and sufficient for the action taken or to be
taken. 3. The commissioner may furnish information to the attorney general, other state
agencies, any prosecuting officials requiring the information for use in pursuit of
official duties, and legislative investigations under chapter 54-03.2. Information furnished by the commissioner to any third party which is confidential in the
commissioner's possession remains confidential in the possession of the third party.
Information received by the commissioner from any third party which is confidential
in the third party's possession remains confidential in the commissioner's
possession. 4. The commissioner may furnish information and enter into sharing agreements as to
matters of mutual interest to an official or examiner of the federal reserve system,
federal deposit insurance corporation, federal home loan bank board, national credit
union administration, office of thrift supervision, comptroller of the currency, any
other federal government agency, insurance commissioner, office of the securities
commissioner, regulatory trade associations, or any state bank or credit union
supervisors or supervisors of other licensed entities of other states. 5. The commissioner shall not be required to disclose the name of any debtor of any
financial institution, credit union, or licensed entity reporting to or under the
supervision of the commissioner or anything relative to the private accounts,
ownership, or transactions of any such institution, or any fact obtained in the course
of any examination thereof, except as herein provided. Page No. 8 6. This section does not limit the right of access of stockholders, shareholders,
depositors, creditors, and sureties on bonds to specified department records as, and
to the extent, provided by section 6-01-07. 7. The standards for confidentiality and disclosure by the commissioner set forth in this
section, except the standard of the exercise of discretion, which shall only be
exercised by the commissioner, apply equally to the state banking board, the state
credit union board, and all department employees. 6-01-08. Appointment of commissioner - Qualifications. The commissioner must be appointed by the governor and confirmed by the senate, and shall hold office for a term of four
years and until a successor has been appointed, confirmed by the senate, and has qualified,
unless the commissioner is removed sooner as herein provided. If the senate is not in session,
the governor may make an interim appointment, and the interim appointee shall hold office until
the senate confirms or rejects the appointment. The commissioner's term of office commences
on the first day of July in each year next following a national presidential election. The commissioner must be a skilled accountant, and may not be an incumbent of any other public
office in the state, or in any county, municipality, or public institution thereof, and may not own,
hold, or control any stocks, capital, or bonds, or hold the office of trustee, assignee, officer, agent,
or employee of any financial institution under the commissioner's jurisdiction, or of any
corporation engaged in the business of guarantying or ensuring the fidelity or faithful
performance of the duties or the solvency of public officers or of public depositaries. The governor may remove from office any commissioner who violates or fails to discharge faithfully
the duties of office or who becomes disqualified under the provisions of this section. 6-01-09. Supervision and examination by commissioner of financial institutions. The commissioner shall exercise a constant supervision over the business affairs of all financial
corporations and institutions, out-of-state branches of financial corporations and institutions, and
branches of out-of-state state-chartered banks, savings and loan associations, or savings banks
within the jurisdiction of the board. Either the commissioner or one or more examiners shall visit
each of the state banking associations and other corporations, associations, and branches under
the commissioner's jurisdiction at least once each thirty-six months to examine their affairs and
ascertain their financial condition. The commissioner shall inspect and verify the assets and
liabilities of the institution and branches to ascertain with reasonable certainty that the value of
the assets and the amounts of the liabilities are correctly carried on its books. The commissioner
shall examine the validity of mortgages held by savings institutions and shall see that all of the
mortgages are properly recorded. The commissioner shall investigate the method of operation
and conduct of the corporations and institutions and their systems of accounting to ascertain
whether the methods conform to the law and sound banking usage and principles. The commissioner shall inquire into and report any infringement of the laws governing those
corporations and institutions, and for that purpose the commissioner may examine the officers,
agents, and employees of the corporations and institutions and all persons doing business
therewith. The commissioner may examine, or cause to be examined, or review the books and
records of any subsidiary corporation of a bank under the commissioner's supervision and may
require the bank to provide information on the holding company that owns the bank. The commissioner shall report the condition of the corporations and institutions, together with the
commissioner's recommendations or suggestions in connection therewith, to the state banking
board, and the board may take such action as the exigencies may demand. 6-01-10. Commissioner to keep records and make reports - Biennial report. 1. The assistant commissioner shall act as secretary and keep all proper records and
files pertaining to the duties and work of the office of the assistant commissioner and
the proceedings of the board. The commissioner shall report to the board annually,
touching on all the commissioner's official acts and those of the deputy examiners,
giving abstracts of statistics and of the conditions of the various institutions to which
the commissioner's duties relate, and making such recommendations and
suggestions as the commissioner may determine proper. Page No. 9 2. The state banking board shall submit a biennial report to the governor and the
secretary of state in accordance with section 54-06-04. In addition to any requirements established pursuant to section 54-06-04, the banking board's report
must include a summary or abstract of the reports of the commissioner. 3. The commissioner shall report to the state credit union board annually in the same
manner as this section provides for the commissioner's report to the state banking
board. The state credit union board shall submit a biennial report to the governor
and the secretary of state in accordance with section 54-06-04, and in addition, the
credit union board's report must include a summary or abstract of the reports of the
commissioner. 4. The biennial reports of the state banking board and the state credit union board shall
be published in the form of a combined biennial report of the department of financial
institutions. The biennial report of the department shall be submitted to the governor
and the secretary of state in accordance with section 54-06-04. The biennial report
of the department must include all other biennial reports which the commissioner or
the boards are required by law to submit to the governor and the office of
management and budget. 6-01-11. Salary of commissioner. The salary of the commissioner must be within the amount appropriated for salaries by the legislative assembly. The commissioner is allowed, in
addition to the commissioner's salary, the commissioner's necessary and actual expenses
incurred in the discharge of the commissioner's official duties. The commissioner's salary and
expenses must be audited and paid in the manner in which the salary and expenses of other
state officers are paid. 6-01-12. Bonds of commissioner and deputies. Repealed by S.L. 1999, ch. 113, § 24. 6-01-13. Commissioner - Appointment of deputies. The commissioner may appoint, remove, and assign appropriate titles to such deputy examiners and such other employees as in
the commissioner's judgment may be necessary for the proper discharge of the business of the
department of financial institutions. The commissioner may select and designate one of said
deputy examiners to be chief deputy examiner and to act during the absence or disability of the
commissioner, and in such cases the deputy examiner so designated has charge of the office
and shall administer its affairs. The chief deputy examiner shall perform such duties as may be
prescribed by the commissioner. 6-01-14. Deputies controlled by commissioner - Reports. Each deputy examiner provided for in this title is under the direct orders and instructions of the commissioner, and shall
report to the commissioner during or immediately after the completion of each examination of
each financial corporation or institution examined by the deputy examiner, together with such
recommendations and suggestions as the deputy examiner may deem advisable. Such report
must be in such form as may be prescribed by the commissioner or the state banking board. 6-01-15. Officers and employees to be disinterested. 1. No officer or employee of this department may have any interest, directly or
indirectly, in any corporation or institution within the jurisdiction of the department of
financial institutions, nor in any corporation or institution engaged wholly or in part in
the writing or issuing of bonds of or for any such corporation or institution or any
officer or employee thereof. Provided, however, this prohibition does not apply to
membership in a state-chartered credit union or savings and loan association. 2. For purposes of this section, "interest" means ownership of or investment in such
corporations or institutions. Page No. 10 6-01-16. Salaries of commissioner's deputies. The salary of the chief deputy examiner and the salary of each other deputy must be fixed by the commissioner within the limits
of the legislative appropriation for such salaries. In addition to the amounts herein specified,
each deputy must be allowed the deputy's actual and necessary traveling expenses when
engaged in the discharge of the deputy's duties. The salaries of all clerks, stenographers, and
other assistants must be fixed by the commissioner within the limits of the legislative
appropriation therefor. 6-01-17. Yearly assessment of banks and interstate branches. Every state banking association and banking institution under the jurisdiction and control of the commissioner and the
commissioner's deputy examiners by this title, including the Bank of North Dakota and every
branch of an out-of-state state bank, shall pay a yearly assessment. This assessment is to be
determined by the state banking board as necessary to fund that portion of the department's
budget relating to the regulation of state-chartered banks and branches of out-of-state state
banks, including the authority to enter into cooperative fee sharing agreements and assessment
of associated travel costs with other state bank supervisors. Assessment fees may not be computed on the combined assets of the bank and its trust department for those banks and
branches exercising trust powers. Fees for the examination of the trust department must be
computed in accordance with section 6-05-28. The assessment must be paid to the state treasurer within thirty days of each June thirtieth. Institutions and branches that have not been
examined by the commissioner or the state banking board for three years prior to any
assessment date shall not be required to pay the assessment. The state treasurer shall report
such payments of fees to the commissioner, and if any such corporation or institution or branch is
delinquent more than twenty days in making such payment, the board may make an order
suspending the functions of such delinquent corporation, institution, or branch until payment of
the amount due. The commissioner may assess a penalty of five dollars for each day that the
assessment fee is delinquent. All fees and penalties under this section must be paid to the state
treasurer and deposited in the financial institutions regulatory fund. 6-01-17.1. Application fees - Cost of transcript. The following fees must accompany an application presented to the state banking board, state credit union board, or commissioner
and must be paid by the commissioner into the financial institutions regulatory fund: 1. For a certificate of authority to organize a banking association, a fee of five thousand
dollars, paid by the applicants. 2. A banking association's application for authority to remove its business to some
place within the state other than the town in which it is presently located and to
change its name, a fee of two thousand five hundred dollars. 3. National bank conversion to a state bank, a fee of two thousand five hundred dollars. 4. Application by two or more banks to merge or consolidate, a fee of one thousand
five hundred dollars. 5. Application by a person to sell, dispose, or purchase an association, banking
institution, or holding company, a fee of five hundred dollars unless a hearing is held
before the board in which case the fee is two thousand dollars. 6. A banking association's application to establish and operate a separate facility, a fee
of one thousand five hundred dollars. A banking institution that discontinues a facility established for the purpose of providing educational opportunities to a high
school is entitled to a refund of any application fee paid. 7. A banking association's application to establish customer electronic funds transfer
centers, a fee not to exceed five hundred dollars. 8. For a certificate of authority to organize an annuity, safe deposit, surety, or trust
company, a fee of five thousand dollars. Page No. 11 9. A banking association's application for authority to exercise trust powers, a fee of
one thousand five hundred dollars. 10. Application to organize a credit union, a fee of three hundred dollars, paid by the
applicants. 11. Application for a credit union to establish a branch, a fee of three hundred dollars. 12. Application by a credit union to expand its field of membership, a fee of one hundred
fifty dollars. 13. Application by a federal credit union to convert to a state credit union, a fee of three
hundred dollars. 14. For a certificate of authority to organize a savings and loan association, a fee of five
thousand dollars. 15. A savings and loan association's application to establish and operate a branch
office, a fee of one thousand five hundred dollars. 16. A trust company's application or notification to establish an operating subsidiary or
branch office, a fee of five hundred dollars. 17. Application by two or more credit unions to merge, a fee of three hundred dollars. The commissioner may cause a certified transcript to be prepared for any hearing conducted on
an application. The costs for the original and up to six copies of the transcript must be paid by
the applicant. 6-01-17.2. Additional assessment of banks and interstate branches. If the commissioner determines that more than one visit, inspection, or examination is necessary to
promote the safety and soundness of a state banking association or a branch of an out-of-state
state bank during a twelve-month period, the state banking association or branch shall pay to the
state treasurer a fee for the time used by the commissioner or other person designated by the
commissioner in supervising, filing, and corresponding in connection with each additional visit,
inspection, or examination and report of examination and for time used by each deputy examiner,
or other person in making and otherwise preparing and typing the reports of examination herein
provided for. Fees for the visit, inspection, or examination must be charged by the department of
financial institutions at an hourly rate to be set by the commissioner, sufficient to cover all
reasonable expenses of the department associated with the visit, inspection, or examination
provided for by this section. A state banking association or branch of an out-of-state state bank
shall pay such assessment or fee within ten days of receiving a billing from the commissioner.
Fees must be deposited in the financial institutions regulatory fund. The state treasurer shall
report the payments of fees to the commissioner, and if any corporation or institution or branch is
delinquent more than twenty days in making the payment, the board may make an order
suspending the functions of the delinquent corporation or institution or branch until payment of
the amount due. The commissioner may assess a penalty of five dollars a day additional for the
delay. The state banking board may waive or postpone the collection of this special assessment
if the assessment would place an undue burden on the state banking association or branch. 6-01-18. Reports and examinations of institutions by federal deposit insurance corporation, other state supervisors, or federal reserve system. The commissioner may
accept, in lieu of any examination authorized or required by this title to be conducted by the
department of any banking institution, the examination that may have been made of the
institution within a reasonable period by the federal deposit insurance corporation, any other state
supervisor, or the federal reserve system, if a copy of the examination is furnished to the
commissioner. The commissioner also may accept any report relative to the condition of any
banking institution which may have been obtained by that corporation or system within a
reasonable period in lieu of any similar report that the commissioner is authorized by this title to Page No. 12 require of the institution, if a copy of the report is furnished to the commissioner. The commissioner may furnish to the corporation or system, or to any official or examiner, a copy or
copies of any or all examinations made of any banking institutions and of any or all reports made
by them, and may give access to and disclose to the corporation or system, or any official or
examiner, any and all information possessed by the office of the commissioner with reference to
the conditions or affairs of any institution insured with the federal deposit insurance corporation.
This section does not limit the duty of any banking institution in this state, the deposits of which
are to any extent insured under the provisions of the federal Act creating the federal deposit
insurance corporation, or of any amendment of or substitution for that Act, to comply with the
provisions of that Act, its amendments or substitutions, or the requirements of the corporation
relative to examinations and reports, nor limit the powers of the commissioner with reference to
examinations and reports under this title. 6-01-19. Commissioner to keep bank record. The commissioner shall keep a bank record wherein must be recorded the name and location of each bank in the state, its
capitalization and changes thereof, its officers, its shareholders and addresses thereof, and its
reserve agents, and changes of the same, and the commissioner shall keep in docket form such
other proceedings as may have been had relative to such bank by the state banking board and
by the commissioner. 6-01-20. Bank of North Dakota entitled to records. Repealed by S.L. 1997, ch. 80, § 2. 6-01-21. State agencies - Examinations - Fees. Repealed by S.L. 1959, ch. 372, § 117. 6-01-21.1. County agencies - Examinations - Fees. Repealed by S.L. 1967, ch. 376, § 63. 6-01-21.2. Municipal agencies, park boards, school districts - Examinations - Fees - Alternative audits. Repealed by S.L. 1967, ch. 376, § 63. 6-01-21.3. Examination of municipal agencies and school districts by order of governor or upon petition. Repealed by S.L. 1967, ch. 376, § 63. 6-01-21.4. Examination in case of irregularity or embezzlement. Repealed by S.L. 1967, ch. 376, § 63. 6-01-22. Examination of counties. Repealed by S.L. 1967, ch. 376, § 63. 6-01-23. Examinations of county treasurers. Repealed by S.L. 1967, ch. 376, § 63. 6-01-24. Supervision of records and fiscal affairs of counties. Repealed by S.L. 1967, ch. 376, § 63. 6-01-25. Supervision of books and accounts of public institutions and private institutions with which state has dealings. The commissioner shall assume and exercise
constant supervision over the books and financial accounts of the several public offices and
institutions which the commissioner is authorized to examine. The commissioner shall prescribe
and enforce a correct and uniform method of keeping financial accounts in such offices and
institutions, shall recommend a form for warrants or for order-checks which must conform so far
as consistent with statutory and charter requirements to approved banking practice, in order to
facilitate handling of such instruments by banks and other depositories, and shall instruct the
proper officer of each of said institutions in the due performance of the officer's duties concerning
the same. The commissioner has authority to examine the books and accounts of all private
institutions with which the state has any dealings so far only as the same relate to such dealings.
If any public officer having control of any such office or institutions fails or refuses to comply with
the directions of the commissioner, the commissioner shall report the facts to the governor and to Page No. 13 the manager of the state bonding fund, and such refusal constitutes grounds for removal from
office and cancellation of the bond of such officer. 6-01-26. Special state examiner. Repealed by S.L. 1967, ch. 376, § 63. 6-01-27. Duty of state examiner on failures by officers. Repealed by S.L. 1967, ch. 376, § 63. 6-01-28. Public and private officers to aid examiner - Examiner's authority on investigation. Repealed by S.L. 1967, ch. 376, § 63. 6-01-29. Obstructing or misleading examiner - Penalty. Every person who, when required to do so, shall refuse or neglect to make any return or exhibit, or to make or give any
information required by the examiner, or who willfully shall obstruct or mislead the examiner in
the execution of the examiner's duties, or who in any manner shall hinder a thorough
examination by the examiner, shall be guilty of a class C felony. 6-01-30. Reports of commissioner - Contents. The commissioner shall report to the governor the result of the commissioner's examination of any public office or state institution and
also shall make a report on any particular matter connected therewith at any time when required
to do so by the governor. 6-01-31. Certain accounts open for inspection. Any person acquiring custody of, or receiving any funds for or on behalf of the state of North Dakota, or any of its political
subdivisions, who places such funds in an account with any financial institution, banking
association, or banking institution, or who commingles such funds with any private account, has
waived all privilege of privacy or confidentiality on such accounts for the purposes of permitting
an audit, examination, or inspection by the state auditor, commissioner of financial institutions, or
the attorney general, as hereinafter provided. Upon application and a reasonable showing by either the state auditor, the commissioner of financial institutions, or the attorney general that any account, private or otherwise, in any
banking association, financial institution, or banking institution, contains funds belonging to the
state of North Dakota or a political subdivision, whether or not commingled with private funds, the
district court may issue its order making such accounts available for examination, audit, or
inspection by the state auditor, the commissioner of financial institutions, or the attorney general.
No financial institution, banking association, or banking institution is subject to damages for
giving information on, or making such account available for inspection, audit, or examination
pursuant to this section. In addition to any other presumptions, any check, draft, or other comparable instrument is presumed to represent public funds of the state, or a political subdivision, as the case may be, if
it is payable to a person identified as an official of the state or a political subdivision. 6-01-32. Liability of bank officers and directors. No claim or action seeking to recover money damages may be brought by the federal deposit insurance corporation, resolution trust
corporation, or other federal banking regulatory agency against any director or officer, including
any former director or officer, of any insured financial depository institution unless the claim or
action arises out of the gross negligence, or willful or intentional misconduct of the officer or
director during the term of office with the insured financial institution. Page No. 14 Document Outline chapter 6-01 department of financial institutions
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